Leases and Other Commitments

6 Months Ended

Dec. 30, 2022

Leases [Abstract]

Leases and Other Commitments

Leases and Other Commitments

Leases

The Company leases certain domestic and international facilities and data center space under long-term, non-cancelable operating leases that expire at various dates through 2034. These leases include no material variable or contingent lease payments. Operating lease assets and liabilities are recognized based on the present value of the remaining lease payments discounted using the Company’s incremental borrowing rate. Operating lease assets also include prepaid lease payments minus any lease incentives. Extension or termination options present in the Company’s lease agreements are included in determining the right-of-use asset and lease liability when it is reasonably certain the Company will exercise those options. Lease expense is recognized on a straight-line basis over the lease term. The following table summarizes supplemental balance sheet information related to operating leases as of December 30, 2022:

	Lease Amounts
	($ in millions)
Minimum lease payments by year:
Remaining six months of 2023	$	24
2024	47
2025	44
2026	43
2027	39
Thereafter	147
Total future minimum lease payments	344
Less: Imputed interest	54
Present value of lease liabilities	290
Less: Current portion (included in Accrued expenses)	39
Long-term operating lease liabilities (included in Other liabilities )	$	251
Operating lease right-of-use assets (included in Other non-current assets)	$	271
Weighted average remaining lease term in years	8.1
Weighted average discount rate	4.1		%

The following table summarizes supplemental disclosures of operating cost and cash flow information related to operating leases:

	Three Months Ended				Six Months Ended
	December 30, 2022		December 31, 2021		December 30, 2022		December 31, 2021
	(in millions)
Cost of operating leases	$	14	$	14	$	28	$	27
Cash paid for operating leases	12		12		26		24
Operating lease assets obtained in exchange for operating lease liabilities	—		11		4		123

Purchase Agreements and Other Commitments

In the normal course of business, the Company enters into purchase orders with suppliers for the purchase of components used to manufacture its products. These purchase orders generally cover forecasted component supplies needed for production during the next quarter, are recorded as a liability upon receipt of the components, and generally may be changed or canceled at any time prior to shipment of the components. The Company also enters into long-term agreements with suppliers that contain fixed future commitments, which are contingent on certain conditions such as performance, quality and technology of the vendor’s components. As of December 30, 2022, the Company had the following minimum long-term commitments:

	Long-Term Commitments
	(in millions)
Year:
Remaining six months of 2023	$	193
2024	256
2025	180
2026	53
2027	46
Thereafter	150
Total	$	878